Sept. 5 - Microsoft and Nokia hope their new Windows Lumia phone can take market share from Apple, Samsung and Google, but disappointed investors slammed Nokia’s stock. Bobbi Rebell reports.
While Microsoft CEO Steve Ballmer was all smiles standing with Nokia head Stephen Elop- shares of the Finnish company were tumbling, down 13 percent as Nokia's new Lumia smartphones, powered by Microsoft's Windows 8 software, got the cold shoulder from investors. Canaccord Genuity's Mike Walkley: SOUNDBITE: MIKE WALKLEY, MANAGING DIRECTOR, CANACCORD GENUITY (ENGLISH) SAYING: "It's gonna come out later than these new Android phones at the Google event today and more importantly, the iPhone 5 which, you know, I'm going to be at their event next week and they usually ship their product right after announcing it. Whereas today with Nokia, it's clear that the software and the product is not even quite ready for the market." In fact Google's Motorola Mobility's new $99 Droid Razr M is already available for pre-order. Two more of the Android powered phones will be out for the holidays. But mum's the word on release dates on the Lumia phones; just hints of upcoming limited releases and no information on pricing. REPORTER BRIDGE: BOBBI REBELL, REUTERS REPORTER (ENGLISH) SAYING: "These Lumia phones do have some appealing features. For example they've got great resolution; top of the line cameras and I'm wearing this glove so I can show you that you can even touch the screen while wearing a glove which is a pretty cool feature. But still analysts say they could be a tough sell to consumers." J. Gold Associates President Jack Gold: SOUNDBITE: JACK GOLD, PRESIDENT, J. GOLD ASSOCIATES (ENGLISH) SAYING: "When consumers walk into a carrier store today they have this pull of the iPhone and they all come in saying 'I want to look at the iPhone'. Nokia's and Microsoft of course their partners' have to be able to push Windows 8 on them and say 'no you really want a Windows phone' and we'll see if that happens." Most consumers are already tied to the iPhone or Android ecosystems- Microsoft hopes its Windows Phone operating system will become a third mobile platform but right now it has less than 4 percent of the market . SOUNDBITE: JACK GOLD, PRESIDENT, J. GOLD ASSOCIATES (ENGLISH) SAYING: "Will Windows be able to catch up? They don't need to catch up. They don't need to have 50 percent market share, but they need to have a substantial market share. And they need to be able to tell consumers why they want Windows 8 and opposed to Apple and Android." Analysts say this may be Nokia's last shot at reclaiming a market lost to Apple, Samsung and Google- they can't afford a miss. John Jackson of CCS Insight: SOUNDBITE: JOHN JACKSON, VICE PRESIDENT OF RESEARCH, CCS INSIGHT (ENGLISH) SAYING: "It's being launched into the teeth of the iPhone 5, the Galaxy S3 and the best of whatever everybody else has to offer, possibly a RIM comeback, something from HTC, you know paints this in a very, very difficult light for Nokia." But Microsoft is hedging its bets- working with other handset makers- like Samsung- which already announced its Windows 8 phone last week. Bobbi Rebell, Reuters.